1. Hampshire Constabulary IT Sourcing Strategy Steve Vercella (Head of IT) & Martin Nel (IT Vendor Manager)

2. Providing an excellent service Catching criminals & managing offenders Active Presence in every neighbourhood Protecting our communities Equipping the team Making the most of resources Business Relationship Management Programme Management Service DeliverySupport Function IT Sourcing Strategy (Added Value)(Commoditisation Service) Policing Plan 2009-12 IT Impact and Contribution Information Management Strategy Strategic IT Delivery Plan IT Infrastructure Strategy IT Vendor Management IT Architecture

3. Question…. Your Previous IT Strategy: Do you know what it was? Did you understand it? Do you know what it delivered? No….., you have a problem with your strategy!

4. This is Something New…… Strategy: Introduce established commercial philosophies to align IT Technology, Resourcing and Sourcing practices to: Generate Significant Savings Generate Significant Savings Improve Performance Improve Performance Increase Flexibility Increase Flexibility Underwrite strategic policing demands Underwrite strategic policing demands Transforming IT - from a technologies solution to a service solution environment Strategy is about outcomes, not technology

5. Self-managed with proprietary applications Self-managed with package applications Single sourcing Multi Sourcing Purchase Hardware Purchase software license & code Develop & maintain own applications Purchase hardware External support necessary, particularly for software customisation Focus on infrastructure sourcing and project based application development Disaggregation of IT in to sourcing components IT Market Developments 70s80s90s00s Technology Solution Driven Service Solution Driven Historiography Increasing market standardisation & commoditisation

6. Inherited Legacy IT infrastructure and sourcing practices remain technology focused – a self managed applications and hardware environment The result: A failure to capitalise on two decades worth of IT market development Requires extensive and specialised internal resources to effectively maintain Dominated by proprietary application and technologies support arrangements InflexibleComplex High levels of operational risk Prohibitively costly to maintain Failure to concentrate on key competencies (Policing!)

7. Low Opportunity to Change Legacy Assessment Increasing Savings Increasing Value Proprietary Suppliers Strategic Suppliers Commodity Supplier Strategic Partners Resources, Apps, Suppliers Hardware £26.9m - Lock-in - but high added value - Unique Competence - Guaranteed Service Commitment - Accept Responsibility / Risk - Aligned Customer Strategic Focus - Significant Service Improvement - Opportunity to change and high added value and high added value - Best Price / Economies of Scale - Guaranteed Service Commitment - Accept Responsibility / Risk - Aligned Customer Strategic Focus - Significant Service Improvement - Opportunity to change but low added value but low added value - Best Price - Improved Service Commitment - Lock-in and low added value and low added value High Opportunity to Change Resources, Applications / Suppliers Hardware £20m

8. Can we afford not to change?

9. Technology Sourcing Resources Re-engineering for change

10. Alignment Barriers Technology: Proprietary technical solutions – inflexible & tied development or support arrangements Heterogeneous hardware and communications infrastructure Resources: Staff -too specialised or inexperienced -unwillingness to consider or embrace change -honest belief that current practices are the best! Internal Procedures & Bureaucracy Sourcing: Reactive Sourcing – the most basic and inefficient form of corporate purchasing - promoting large and complex solutions and support-base No in-house commercial sourcing, contract or vendor management expertise Profile – failure to integrate and align with corporate strategic objectives

11. Increasing Savings Increasing Value Effecting Change – Resources Alignment Strategic PartnersStrategic Suppliers Commodity Supplier Resources Low Opportunity to Change High Opportunity to Change Alignment Objectives Resources

12. Effecting Change – Technology Alignment Alignment Objectives Technology Low Opportunity to Change Technology Commodity Supplier Increasing Savings Increasing Value Strategic PartnersStrategic Suppliers High Opportunity to Change

13. Effecting Change – Objective Symmetry Resources, Technology & Sourcing Objectives Combined Our Strategy Commodity Supplier Low Opportunity to Change Increasing Savings Increasing Value Strategic PartnersStrategic Suppliers Sourcing Resources Technology High Opportunity to Change

14. Low Opportunity to Change Increasing Savings Increasing Value Change in action – Whole-life-cycle contract Strategic Partners Resources & Sourcing Hardware Strategic Suppliers Whole-life-cycle contract Alignment in Action – An Example High Opportunity to Change Proprietary SuppliersCommodity Suppliers

15. Increasing Savings Strategic PartnersStrategic Suppliers Low Opportunity to Change High Opportunity to Change Commodity SuppliersProprietary Suppliers Increasing Value Projected Outcomes – Network & Comms SM – L4 NIA – L5NIA – L4NIA – L3 Intra-net /CSouth Xtranet & Telecom-BT Strategy in action Possible Objectives – Network & Comms Managed Service / Outsourced Supplier

16. Increasing Savings Increasing Value Projected Outcomes – Applications Strategic PartnersStrategic Suppliers Low Opportunity to Change High Opportunity to Change Commodity Suppliers Ops & COTS applications RMS, Airwave, Holmes Altaris, Carm - Serco Software asset & external application management Managed service solution Strategy in action Possible Objectives – Applications SM – L 5SM – L4 DBM – L 5 DBA – L4

17. Effective Action Taken Achieved: Whole Life Cycle (Saving £527k ytd) Whole Life Cycle (Saving £527k ytd) Software Asset Management Solution (Saving £400k pa) Software Asset Management Solution (Saving £400k pa) Call Management (Altaris) Call Management (Altaris) Network Management (Saving £1m pa) Network Management (Saving £1m pa) IT Help Desk (Saving £165k pa) IT Help Desk (Saving £165k pa)Planned: User Support User Support Review Open Source Potential Review Open Source Potential Print Strategy Print Strategy Data Centre Review Data Centre Review

18. Secret to unlocking this potential? Right Sourcing Multiple Sourcing remains the key to delivering service improvements and savings Recognise that targeted outsourcing represents a valid “normalised” sourcing option Supply-chain focus and strategic objectives need to align with those of the Constabulary Greater acceptance and assignment of risk to the supply-chain Embrace modern-day IT sourcing practices, through:

19. Maximising Benefits and Returns? Collaboration Collaboration needs to be a key strategy objective Will fail without Strategy Alignment between collaborative partners Acting Collaboratively, increased economies of scale and amalgamation of repeat service functions provides the greatest possible opportunity for the generation of highly significant savings and service improvements

20. Next Steps Strategy:  Agreement  Publish Strategy  Communicate: Police Authority Strategic Suppliers SERIT Forces NPIA Implementation:  Complete Outsourcing Market Review  Build Strategic Delivery Plan